Update sccp-2128

Synthetixio · Jul 25, 2024 · 27f1dfa · 27f1dfa
1 parent 872f543
commit 27f1dfa
Showing 1 changed file with 4 additions and 4 deletions.
diff --git a/content/sccp-2128 b/content/sccp-2128
@@ -12,21 +12,21 @@ type: Governance
 
 <!--"If you can't explain it simply, you don't understand it well enough." Provide a simplified and layman-accessible explanation of the SCCP.-->
 
-This SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 110% on L1 only.
+As a continuation of the migration process to v3, this SCCP proposes to decrease the SNX `liquidationRatio` from 160% to 120% on L1 only, given the Treasury Councils ability to absorb liqudations. 
 
 ## Abstract
 
 <!--A short (~200 word) description of the variable change proposed.-->
 
-With the SNX migration to v3 underway on L1, the SNX `liquidationRatio` on v2 can be reduced from 160% to 110%.
+With the SNX migration to v3 underway on L1, the SNX `liquidationRatio` on v2 can be reduced from 160% to 120%.
 
-`liquidationRatio` is the ratio below which SNX stakers in v2 can be flagged for liquidation. Once flagged, and after the `liquidationDelay` of 8 hours, the flagged staker can be liquidated. 
+`liquidationRatio` is the ratio below which SNX stakers in v2 can be flagged for liquidation. Once flagged, and after the `liquidationDelay` of 8 hours, the flagged staker can be liquidated. With the Legacy Market deployed, liquidations are absorbed by the Treasury Council in the v3 system.
 
 ## Motivation
 
 <!--The motivation is critical for SCCPs that want to update variables within Synthetix. It should clearly explain why the existing variable is not incentive aligned. SCCP submissions without sufficient motivation may be rejected outright.-->
 
-The migration of SNX to v3 has begun on Ethereum via the Legacy Market defined in [SIP-306](https://sips.synthetix.io/sips/sip-306/), and so SNX liquidations in v2 are absorbed by the v3 SNX stakers. The Treasury Council has been migrated to v3, and is well capitalized to absorb any liquidations.
+The migration of SNX to v3 has begun on Ethereum via the Legacy Market defined in [SIP-306](https://sips.synthetix.io/sips/sip-306/), and so SNX liquidations in v2 are absorbed exclusively by the v3 SNX stakers. The Treasury Council has been migrated to v3, and is well capitalized to absorb any liquidations.
 
 ## Copyright